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November 16, 2016

Press release

Almaty, November 15, 2016

KazAgroFinance becomes the first issuer for the last two years to place its 5-year KZT 8 billion bond for a wide range of investors

On 14 November 2016, KazAgroFinance has successfully placed its tenge-denominated 5-year KZT 8 billion bond on the Kazakhstan Stock Exchange (KASE). 

Halyk Finance acted as the Lead Manager and Financial Advisor on the transaction and Eurasian Development Bank and Tsesna Capital acted as Co-Managers. 

The placement is unique in a way that among investors there was no Integrated Accumulative Pension Fund (IAPF) as it usually practiced in recent years but only private institutional investors. The Issuer and the Managers believe this suggests that the market is getting ready for such public placements. 

Ainur Seitkasimova, First Deputy Chairwoman of the Management Board at KazAgroFinance: "Placing local public bonds for a wide range of investors is our consistent strategy to improve investment attractiveness of KazAgroFinance. Investors' trust is supported by the company's stable financial position and the transparency of its operations. In recent years, the company has been aiming to diversify the instruments and sources of financing to promote the development of Kazakhstan's agro-industrial sector. We hope that the success of our debut issue will attract investors' attention to Kazakhstan's agrarian sector alongside with the oil and banking sectors." 

Farkhad Okhonov, Director of Financial Consulting and Underwriting Department at Halyk Finance: "This successful placement was preceded by diligent work of Halyk Finance as the Lead Manager in cooperation with KazAgroFinance and Co-Managers, to determine the issue terms, which in the end ensured investors' interest. We hope that, in the context of the continuing decrease in the interest rates of the National Bank's notes, KazAgroFinance's transaction will clear the way for new public placements of tenge-denominated corporate bonds which the domestic market has not seen for over two years already." 

Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at EDB: "We have been successfully cooperating with KazAgroFinance for a long time and we are confident in its financial stability. We see our participation in the bond issue not only as provision of financing for KazAgroFinance to purchase agricultural equipment, but also as support the development of the capital market in Kazakhstan, which is in line with the bank's strategy aimed to promote development and economic integration of its member states. We hope that this successful placement will foster an increase in investments in Kazakhstan's agriculture and help to advance the country’s capital market further." 

Samat Balkenov, Chairman of the Board at Tsesna Capital: "KazAgroFinance's bond placement is our first try and the groundwork for the future. Before, there were practically no placements for such an amount and period without the participation of the Single Pension Savings Fund." 

Fitch has rated the bonds at BB+. 

In accordance with the resolution of KASE's Listing Commission dated 9 November 2016, the issue was included in KASE's official list in the category "debt securities of entities from quasi-public sector." 

Additional Information 

KazAgroFinance was set up by a governmental resolution in 1999. Its main objective is to support the country’s agrarian sector by ensuring access for agricultural producers to finance and agricultural and process equipment on the terms of lease. 

Halyk Finance is Kazakhstan's leading investment bank providing the full range of investment and banking services, including financial consulting and underwriting (arranging the issues and placements of corporate issuers' securities), corporate finance (including M&A consultancy on share/participatory interest purchases and sale, and corporate debt restructuring), brokerage and trade in securities, market making at KASE, investment portfolio management, and research. 

Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. 

Tsesna Capital is one of Kazakhstan's largest investment companies in terms of capitalisation. With a twelve-year record at the stock market, the company offers a truly innovative line of investment and finance products in Kazakhstan's and international securities markets. Tsesna Capital is the only brokerage company having a strategic location in Astana, the capital of Kazakhstan.


Press Service:

 +7 7172  55 73 40

+7 (702) 218 67 17


Halyk Finance
Press Service:


+7 727 357 31 77


Tsesna Capital
Press Service:


+7 (7172) 472-551


EDB Media Service:


+7 (727) 244 05 45, ext. 6147 (Almaty)


+7 (495) 645 04 45, ext. 2724 (Moscow)



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